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Driven by higher housing-related costs, inflation rose as expected in July, according to a Labor Department report Wednesday that is expected to keep a highly anticipated interest rate cut on the table in September, CNBC reports.
The consumer price index, a broad-based measure of prices for goods and services, increased 0.2% for the month, putting the 12-month inflation rate at 2.9%. Economists surveyed by Dow Jones had been looking for respective readings of 0.2% and 3%.
Excluding food and energy, core CPI came in at a 0.2% monthly increase and a 3.2% annual rate, meeting expectations.
The annual rate is the lowest since March 2021, while the core is the lowest since April 2021, according to the Bureau of Labor Statistics report.
Inflation readings have been gradually drifting toward the central bank’s 2% target.
Fed officials have indicated a willingness to ease rates, though they’ve been careful not to commit to a specific timetable nor to speculate about the pace at which cuts might occur. It has been speculated that the first decrease could happen next month.
